Court allows Airbus right to cancel Qatar Airways’ jet order

A London judge has thrown out a request by Qatar Airways to prevent Airbus from terminating its order for its top-selling A321neo passenger jets in a setback for the Gulf carrier. Airbus will now be able to offer the aircraft, originally destined for Qatar Airways, to other potential customers. There is high demand for the medium-sized family of jets as airlines emerge from the coronavirus pandemic. Airbus in January revoked the $6bn order for 50 A321neo narrow-body aircraft by Qatar Airways, one of its biggest and longest-standing customers. The highly unusual move, which shocked the industry, came after the airline had refused to take delivery of larger A350 aircraft amid a wider row over the quality of the paint on the wide-body jets and whether it constituted a safety issue. Qatar Airways subsequently asked the judge for an injunction to prevent Airbus from cancelling the contract, arguing there was no equivalent substitute for the jets. A judge in London’s High Court on Tuesday dismissed the request, noting that Qatar was “well able to source” alternative aircraft to make up the anticipated shortfall, either by leasing jets or through a separate order for Boeing 737 Max planes. An initial delivery of A321neos had been expected in the fourth quarter of 2023. The judge added that if Qatar wins the main trial over the A350 aircraft, then Airbus should still be able to reinsert the A321neos into its production plans. Airbus had previously argued that Qatar Airways’ refusal to take delivery of the A350 jets amounted to a default, allowing it to adjust or cancel other contracts it held with the airline, including the contract for the A321neos. Justice David Waksman on Tuesday ordered Qatar Airways to pay 90% of Airbus’s legal costs, with an interim payment of GBP260,000 to be made in the next two weeks.<br/>